Will the 5.5 Billion Won Recovery of Jeon Du-hwan's Additional Tax Be Successful? Trust Company Loses Appeal in Second Trial

A trust company that opposed the seizure of auction proceeds from family land to recover the fines imposed on former President Jeon Du-hwan lost again in the second trial.

Court. Photo by Yonhap News

The Seoul High Court Administrative Division 8-3 (Presiding Judges Shin Yong-ho, Jeong Chong-ryeong, Jo Jin-gu) ruled on the 8th that Kyobo Asset Trust lost the lawsuit against Korea Asset Management Corporation to cancel the distribution of auction proceeds, as in the first trial.

This lawsuit was filed over the seizure of the land value of three out of five forest land parcels in Osan City entrusted to Kyobo Asset Trust by the family of former President Jeon. In 1997, former President Jeon was sentenced to life imprisonment by the Supreme Court on charges including rebellion and bribery, along with a confirmed fine of 220.5 billion won. Accordingly, the prosecution seized five forest land parcels in Osan City in 2013 to enforce the seizure ruling.

The forest land was put up for public auction in 2017, and 7.56 billion won was distributed as part of the fine, but Kyobo Asset Trust filed a lawsuit to cancel the seizure. After going to the Supreme Court, about 2.052 billion won of the land value of two parcels was returned. However, Kyobo Asset Trust filed a lawsuit to cancel the distribution of auction proceeds for the remaining three parcels and failed to recover the funds.

Kyobo argued, "The Osan land cannot be considered as property included in the bribes received by former President Jeon or obtained as a reward for them," but the first trial court stated, "It was recognized in the invalid seizure lawsuit that the plaintiff already knew the property was illegal at the time of the trust collateral," and ruled the seizure was legitimate. Kyobo also argued that since they paid appropriate compensation and acquired the Osan land, it should not be subject to seizure, but the court judged that it was subject to seizure even in this case.

Meanwhile, the state has recovered 128.22 billion won in fines from former President Jeon so far. If this ruling is finalized, an additional 5.5 billion won can be recovered.